SEC proposed Rule 3b-16 to expand definition of exchange to crypto markets

April 14, 2023 - The Securities and Exchange Commission (SEC) published a release for its January 2022 proposal to amend Exchange Act Rule 3b-16, which would expand the definition of an "exchange," requiring market entities, including crypto and decentralized finance (DeFi) systems, to register as exchanges or register as broker-dealers and comply with Regulation ATS. The rule would apply to various persons or groups of persons that could constitute an "exchange" even without a centralized body managing the blockchain.